VERMONT

Vermont Senate Bill (S.60) was passed by the Vermont Legislature on May 11, 2001 and was signed by Vermont's Governor on May 25, 2001, becoming law effective 07/01/2001.

The new law adds (Section 3718a. Charitable Gift Annuities) to Vermont Sec. 1.8 V.S.A., requires charity to include a specific state mandated Disclosure Statement in the gift annuity agreement, and include in the agreement the intervals that payments are to be made, the date that payments are scheduled to begin and the amount of each payment. A copy of the Vermont Law as signed into law can be seen at ...

http://www.leg.state.vt.us/docs/2002/bills/passed/S-060.HTM

Charitable Gift Annuities are regulated by the State of Vermont Laws Section 2.9 V.S.A. Chapter 68 "Charitable Gift Annuities", Section 2517:

Charities must qualify for exemption from regulation as an insurance company by having been in continuous operation for at least 3 years and by having at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, in addition to the assets necessary to fund the charity's outstanding annuity obligations on the date it enters into a gift annuity agreement.

Notice to State: Charities need NOT notify the State of Vermont Attorney General or Insurance Dept. that it is issuing qualified charitable gift annuities to Vermont residents.

Notice to Donor: With ANY gift annuity agreement written after July 1, 2001, the annuity agreement shall include a notice in a type size no smaller than that used generally in the gift annuity agreement, stating that . . .

"A charitable gift annuity is not insurance under the laws of the State of Vermont and is not subject to regulation as insurance by the Department of Banking, Insurance, Securities and Health Care Administration, or protected by an insurance guaranty association."

Penalties: Failure to qualify and comply with the above provisions for notifying donor in any gift annuity agreement issued after 7-1-2001, shall permit the Vermont Attorney General to bring an action against the charity, imposing various penalties, including a civil penalty of up to $10,000 for each violation. The law contains more than a page of details as to enforcement and penalties of failure of charity to qualify for the issuance of gift annuity agreements and for failure to notify donors as to wording in agreements, under Vermont Law.

This page last updated July 1, 2001.